Technology was the market leader in 2014 after advancing more than 14%. This is my favorite area for growth investment and it should continue to be so in 2015. The NASDAQ will likely make it to the 5,000 level, last visited in early 2000, but not on a real basis if you discount in interest rates. A break here will likely see the index take out a new record-high at above 5,100. My areas of interest here include the mobility and Internet sectors. I’ll be watching the big-name momentum stocks.
The poor cousins in 2014 were the small-cap stocks, which reported their worst performance since 2011 when the Russell 2000 fell just under six percent. I feel the index can fare better this year, but I doubt it will outperform the S&P 500 or NASDAQ.
While I am positive overall in 2015, I do expect the global economic uncertainties to cause cautious and volatile trading in this New Year.
I see a minor adjustment of up to 10% as a potential buying opportunity. Overall, I will be looking at market weakness as an opportunity and not a signal to run to the exits.
I’ll also make sure to take advantage of opportunities to take some money off the table after strong advances in the market.
Finally, in 2015, I will be careful with the higher-beta and momentum stocks, which I believe will be the most vulnerable in this New Year.
This article is brought to you courtesy of George Leong.